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EU must strengthen development policy to fight poverty and terrorism in Asia

ASIA, an increasingly important economic partner for the European Union, is a region with major security challenges. But, to date, the Union has not undertaken a significant role in supporting development there, preferring to observe US actions and the resulting growth of anti-Americanism. This cannot be to the benefit of the EU.

Terrorism in Asia is a multi-dimensional phenomenon that cannot be tackled by force alone. Poverty and income disparities have grown together with the economy and can be used as justification for terrorism – but the EU is not acting upon this reality.

Eradicating poverty is the main objective of EU development policy and some 75% of the world’s poor live in Asia. Yet the EU is directing less than 20% of its aid to the region.

In its development cooperation, the EU emphasizes employment creation, but in its trade policy it prevents Asian industrial products from entering its markets by, for instance, anti-dumping policies.

Agricultural subsidies are the biggest barrier for developing countries to integrate into the world economy on an equal basis. It is hardly surprising, then, that drugs have become a central product of export to the EU – being far more lucrative and beyond regulation.

Although the EU member states are the biggest group of shareholders in the international financial institutions, they have not presented alternatives to the US-advocated neoliberal model for developing countries. The model has led to cuts in public spending, including in education.

While the terrorist movements’ leadership in Pakistan, for instance, often comes from well-educated middle classes, the ranks have hardly any education or only education given by religious leaders. In a context of corruption and authoritarian rule, which has increased in many Asian countries during the US-led war on terrorism, violence easily becomes an effective way to express discontent.

The EU is in a good position to tackle such violence by proposing its own example of regional integration – an issue crucial to the security problems of Asia. Religious extremists, separatist and criminal organizations form networks across borders. The EU, due to its multilevel character, can support comprehensive strategies in responding to the threats posed by such groups. It can utilize actors representing various levels, including NGOs, which have capacities to engage with local people.

With regard to a potential Asian nuclear arms race, the EU has concentrated on a dialogue with North Korea. However, US-China relations are even more critical in the long run.

While these relations are now better than ever before, the US-China dispute over Taiwan can become acute once attention moves away from terrorism. President George W. Bush announced in 2001 the US withdrawal from the Anti-Ballistic Missile Treaty and plans to develop new missile defences.

Because this erodes China’s capacity to deter a US nuclear strike, Beijing might respond by increasing its capacity, which could be followed by India and Pakistan.

Europeans have only a secondary role in this field. In Asia hardly anyone regards France or the UK as nuclear powers. But together with Russia, Australia and other powers in the Asia-Pacific region, the EU could advocate establishing a similar dialogue between the US and China that existed between the US and the Soviet Union at the end of the Cold War. Both rivals should know beforehand how the other would respond to their moves.

The EU cannot become a superpower actor in Asia. However, as a multilateral actor, it could balance the vacillations of US policy, especially since these are so vulnerable to domestic politics.

As a multilevel actor, the EU can also be open to new approaches in a way that government actors alone seldom are.

A more active role underscores coordination between different policies, but it should not narrow down the content to short-term interest. Development cooperation should be strengthened as part of the common foreign and security policy with its own objectives and modus operandi.

Liisa Laakso is a lecturer of international politics at the University of Helsinki. She recently participated in the 3rd Asia-Pacific Regional Security Dialogue in Beijing.

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